This regression is caused by the following change upstream in dnsmasq:
http://thekelleys.org.uk/gitweb/?p=dnsmasq.git;a=commitdiff;h=44eb875a5ab2e3b862a6b2bc9fbbb919475d2107For those affected by this bug, the work-around is to revert the DNSMASQ_OPTS line of /etc/init.d/dnsmasq to its previous format.
The fix would be to detect the format of root.ds, perhaps by checking the version of the package to which it belongs, before attempting to parse it.
- Colin Wetherbee